This Annual Development Report (ADR) 2011 is the fourth of the annual series of reporting. The report provides an annual assessment on progress made on the implementation of national development priority within the seven broad policy objectives of the government. This report, among other things, also summarises policies, programs and activities which contributed significantly to achieving Government objectives or the monitoring and evaluation of these. This year’s report focuses on the impact of the Malaria Intensified Program on Annual Parasitic Incidence in Vanuatu.

Since the first ADR in 2008 (ADR 2008), steady progress has been made towards achieving development objectives and goals across all priority development areas including the MDGs. The 2011 ADR highlights several significant achievements. In the economy macroeconomic stability has been achieved through a sound policy framework designed to promote fiscal stability while promoting private sector led economic growth despite a depressed world economy. Vanuatu’s export position has improved due to increased exports of services, especially tourism related and commodity exports. The level of Foreign Direction Investment (FDI) increased in 2011 compared to 2010, and formal sector employment continued to increase. Training opportunities for ni-Vanuatu entrepreneurs have expanded through the training programs provided by the Department of Cooperatives. The National Micro, Small and Medium Term Enterprise Policy framework was developed by the Department of Cooperatives.

The primary sectors continued to grow with value added processing and diversification of products in the coconut sector, notably the increase in export of coconut oil. Key primary sector strategies have been finalised with the energy road map launched in 2011. The national biodiversity strategy and action plan was reviewed and new initiatives and strategies adopted based on a climate change framework. In the governance sector progress has been made with decreased turnover of Government legal experts compared to past years, while PSC disciplinary action was more effective and efficient. Senior positions within the national Government, provinces and the municipalities are now administered under PSC rules and regulations. The World Bank governance indicators continued to show improvements for Vanuatu in voice and accountability and political stability. In the social sectors, the gender analysis of the 2009 Census of Population and Housing was published by the VNSO.The under-five mortality rate continued to decline, measles immunisation for children reached 92%, while full immunisation coverage now stands at a high of 80%. The annual Malaria Parasite Incidence declined and is recorded at 9 per 1,000 people in 2011. School enrolment at primary level continues to increase with more children now attending primary school because of the introduction of fee free primary schooling. The number of tertiary scholarships granted increased and in 2011, 593 scholarships were awarded.

The Public Works Department’s made a number of improvements in its core business including restructuring which was approved by the PSC to improve performance in road maintenance, implementing participatory output budgeting processes and moving to outsourcing and contracting infrastructure development and maintenance to island based entrepreneurs and communities. Cruise ships and cargo boats increased the number of visits to Vila and Luganville compared to previous years. In late 2010 the electricity concession for Luganville was granted to VUI, the new entrant to the Vanuatu electricity market, and rebuilt two-thirds of the hydro generation in 2011. Vanuatu is on track to achieve the 84% target of access to safe drinking water by 2015.

These major accomplishments, and the many other outputs included in this report, reflect the commitment across government, with support from stakeholders and development partners, towards achieving the objectives outlined in the PAA as well as the increased emphasis on the monitoring and evaluation of the outcome of government programs. The Government through the Prime Minister’s office is continuing to provide support to line ministries in strengthening their planning and monitoring processes.

Progress has been made to improve the linkages with the PAA and sector strategies with stronger emphasis in improving the performance indicators used by the ministries for monitoring and evaluation. Work is also under way to improve the linkages between sector strategies and the budget narratives with the objective of strengthening the budget processes and aligning budget cost centres with sector strategies.

It is the Government’s vision and obligation to improve the welfare of the people of Vanuatu as entailed in the PAA. It is therefore important that the Government continues to report on the progress of its plans. I believe this report will provide invaluable information to the public, stakeholders and donor partners on the achievements made, and challenges faced, for the year 2011.

I would like to take this opportunity to thank all Government Ministers and public service staff for their continued effort and support in 2011. The development outcomes would not be achieved without them. Last but not least, I would like to extend my sincere gratitude to all development partners, civil society and private sector for all development achievements in 2011.

(Hon. Meltek Sato Kilman LIVTUNVANU, Prime Minister, 2012)

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